ASUS chairman Johnny Shih has confirmed that the company is pondering the purchase of struggling smartphone maker HTC. The news comes as HTC shares dived 20% after the Taiwanese company forecast a steep loss for the June quarter.
“Our chairman has chatted about the topic internally,” revealed ASUS Chief Financial Officer David Chang when talking to Reuters.
Despite producing some terrific smartphones, HTC has long been struggling to compete against rivals like Apple and Samsung.
Since it launched the One M9 in March, shares have plunged almost 50%, and the company is writing off $93 million for the second quarter of 2015 as production of its flagship device is cut by 30%.
HTC is said to be working on a new “hero” smartphone for later this year, but it’s going to take more than one device to turn the company around. Its market value right now is just over $2 billion, which is a measly sum compared to the $33.8 billion the company was worth just four years ago.
HTC could be an ideal acquisition for fellow Taiwanese gadget maker ASUS right now, then, but the chances of a takeover are still “not big,” Chang added, “as Asustek is a company that has depended on organic growth.”